this morning, the irs in the crosshairs. >> new details in this developing story, a major investigation being launched into the political targeting scandal. did the rhys violate the civil rights of tea party members? making history at sea. the future of u.s. naval warfare put to the test. unmanned drone launched from the deck of an aircraft carrier. time to dream again. the powerball payout reaching record levels once again. what would you do with $360 million. on "dancing with the stars," next stop the times, the top four pairs move on to the very last round after a surprising elimination last night.

good morning, everyone. we begin with the scandal surrounding the irs this morning. it is a lot more serious right now than it was when we told you about it 24 hours ago. >> a criminal investigation is now under way and that means some people involved could eventually face jail time. abc's devin dwyer joining us from washington with the very latest. good morning, devin. >> reporter: good morning. investigators say the irs improperly targeted at least 17 conservative groups last year putting a chilling effect on their activities and possibly breaking the law. in a dramatic turn, the fbi is now investigating the internal revenue service. >> we examining the facts to see if there were violations. >> reporter: at issue whether officials illegally engaged in partisan politics on duty and violated the civil rights of tea party and conservative groups. their applications were singled out for extra review. a new agency watchdog blames ineffective management at offices in washington and cincinnati saying agents were

overly asking for irrelevant and unnecessary information. >> for them to target and profile organizations and individuals based on ideology should scare everyone. >> reporter: in a statement, the irs pushed back saying it's required by law to determine if organizations are engaging in a legally permissible level of political activity but the agency acknowledged that inappropriate shortcuts were used. the white house says it had no knowledge of the irs tactics. after reading the new report, president obama called them intolerable and inexcusable. the irs must apply the law in a fair and impartial way, mr. obama said in a statement. this report shows that some of its employees failed that test. this suggests to me there is a culture of rottenness. we'll get to the bottom of it. >> reporter: three congressional committees are reviewing the activities but it's the justice department investigation that could have the most bite. the maximum penalty is ten years

in prison, john. >> devin dwyer in washington, thank you another big news story. the military dealing with another high-profile sexual assault case. it involves an uven named army sergeant who has now been suspended as the head of the sexual abuse prevention team in ft. hood, texas. now, the new case follows last week's arrest of lieutenant colonel jeffrey krusinski on sexual battery charges, leader of the sexual assault response unit. he will be tried in july. you heard from the attorney general about the irs scandal. eric holder could face tough questions on capitol hill about the justice department's secret probe on phone records from the associated press. holer defended that probe yesterday saying it was a necessary part of a national security leak investigation. and he says he removed himself from the case because he had been questioned in that investigation. holder's deputy james cole made the decision to seek the ap's phone records.

hi the u.s. ambassador sullened there in connection with an american diplomat kicked out accused of spying. here's abc's martha raddatz. >> reporter: the russians say ryan fogle is no diplomat and say they caught the 29-year-old american red-handed trying to recruit a russian intelligence officer to spy for the u.s. they rolled out supposed evidence, two wigs, three pairs of glasses, ziploc bag s filled with wads of euros and this letter for the intended would-be spy saying "deer friend, we are ready to offer you $100,000 to discuss your experience and cooperation and we can offer up to 1 million a year for long-term cooperation" no secret the u.s. and russia still spy on one another. it's part of the allure of the city. this mailbox was once the place

where an american double agent would leave a mark to signal his russian handlers. and remember anna chapman, part of a russian sleeper cell living a suburban life who was expelled in 2010. this case is a little mysterious. look closer at that evidence. the wigs, it's raising questions, spy craft that seems more maxwell smart than james bond. peter earnest was a cia officer for 20 years. >> he doesn't want to have stuff on him that is spy stuff unless as the speculation goes it's a total setup. >> reporter: maybe he's a spy or maybe the russians were trying to embarrass a diplomat? the cia isn't speaking. fogle has been kicked out of the country headed back to the u.s. from russia with love. martha raddatz, abc news, washington. military history being made on the deck of a u.s. aircraft carrier. for the first time ever a drone

has been launched from a ship. it could eventually open the way for the u.s. to launch unmanned aircraft from just about anyplace in the world. the next test comes this summer when the navy tries to launch it from a moving carrier. prince harry plays polo in connecticut after visits to new york and new jersey. harry delivered a speech at a manhattan fund-raiser last night for his royal foundation charity. he arrived in the city on a double decker bus with british prime minister david cameron and took a few swings at a field had harlem. he toured the jersey shore accompanied by governor chris christie. >> fantastic american tourism, everyone getting together and making things right. the governor has been fantastic. you can see how many people have come out working together. >> reporter: he played a few games with the governor in seaside heights and shortly after the visit work crews began removing that ruined roller coaster swept into the ocean by hurricane sandy.

the ride is being dismantled in chunks dropped on to a barge piece by piece. three other rides will also be removed. a new ride coming to the rebuilt pier will be called the superstorm in defiance of sandy. >> perfect name for that, right. time now for the with earth across the nation, thunderstorms are a threat this afternoon from the midwest to the northeast. it could be gusty winds and hail. a new storm system moving into the pacific northwest bringing showers to seattle and portland. >> the southwest finally gets a break from scorching temperatures today. 80s for the mid-atlantic and carolinas and parts of the midwest will cool off after a dramatic swing in temperatures. sioux city went from 29 to 106 yesterday. >> still ahead, extra cash. the u.s. government gets some good news about its financial future. plus, british noble will once again invade american living rooms. there is now a date for the premiere of the new season of "downton abbey."

two jackpots. $2 and a dream.

this morning, signs that the country's financial footing is improving. these numbers are even surprising. some number crunchers in washington. take a look. in april the u.s. posted a rare budget surplus adding $113 billion. that is the largest surplus in five years. what's more, when the physical car year ends in september, the budget deficit is expected to shrink to $642 billion. 200 billion less than was expected just a few months ago. the head of google is facing a major health challenge this morning. ceo larry page reveals he has a

paralyzed left vocal cord and severely restricted right vocal cord. investors worried last summer when he lost his voice and missed two key meetings for the company but says he can still handle his duties even though his voice remains soft and raspy. u.s. airlines cleaned occupy an baggage fee changes. the 15 largest carriers took in more than $6 billion of those fees. the most since they became common five years ago. delta took in the most but carried the most passengers. the charges are credited with helping the industry return to profitability. connoisseur of coffee, bad news for you. some of the world's best coffee beans are under attack by an aggressive fungus. it is spreading through coffee fields in central america. growers could lose up to half a billion resulting in higher costs for companies. luckily it hasn't made it all the way to the customer yet. burger king looking to step up its game against mcdonald's

with the own pop largs version of the mcrib sandwich. pretty similar. complete with the boneless pork ing tangy sweet sauce and sweet pickles as well and burger king starts selling it next week only available through the summer along with a few other new items. i know you'll run out and get it. >> i know you are. >> i'll stick with my whoppers and big macs. fake bones? >> i did have my first mcrib last year. not bad but i'll stick with the whopper and big mac. next wednesday, more reaction to angelina jolie's double mastectomy. plus, a tussle and tangle. midair battle bringsv0> to the ground in an unusual works like listerine®. oth in your mouth, bacteria forms in layers. listerine® penetrates these layers deeper than other mouthwashes, killing bacteria all the way down to the bottom layer.

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because it saves things. [ cellphone beeps ] like your marriage. [ boys laughing ] sanity. [ sighs ] [ male announcer ] and time. oh, and money. technology saves lots of money. take esurance for example. they were born online and built to save people money on car insurance. [ boys laughing ] yep. technology can do some amazing things. but it can't unhurt feelings. esurance. insurance for the modern world. now backed by allstate. click or call. people in mexico are keeping a close eye on this erupting volcano that is shooting ash and steam nearly two miles into the air. they're worried that rain could cause the ash around the crater to wash down the volcano and

flood nearby towns. take a look at the morning road conditions back in the u.s. i-5 could be slippery around seattle with showers expected. it's mostly dry everywhere else this morning. and if you're flying, airport delays are possible in dallas, philly, new york and boston. angelina jolie getting praise this morning from the public and her peers after revealing her bold decision to have a preventive double mastectomy to lower her risk of getting breast cancer. >> her partner, brad pitt, issued a statement saying "her choice was absolutely heroic" and jolie's dad jon voight called her an inspiration. how did she keep it a secret with her busy schedule? here's abc's paula faris. >> reporter: jolie's process began in february. she kept it private and carried on with her work. here she is on the red carpet in february just days after what we now know was her first procedure. in march ten days after major surgery to have breast tissue removed, she takes a humanitarian trip to the congo. in april not long before that

final surgery attending the women in the world summit. the next day, taking the kids shopping. >> that was abc's paula faris. jolie also hinted that she might at some point have her ovaries removed. some doctors are careful to point out that her surgery is not for everyone who carries the breast cancer gene but they say it only makes sense for a small category of women. and the "gma" team is working on some brand-new exclusive details so, of course, you'll want to stay tuned for those coming up later this morning. convicted killer jodi arias returns to a phoenix courtroom today as jurors begin considering her punishment. arias was found guilty last week in the 2008 killing of her boyfriend. she told a reporter she'd rather die in prison -- than spend the rest of her life there. now, authorities say she is being held alone in a cell and allowed out for one hour each day. o.j. simpson will get the chance to plead his own case when he takes the stand this morning. the former football great trying to convince a nevada judge he deserves a new trial on

robbery and kidnapping charges. it will be the first time we have heard him from testify in any of his trials. he won a small victory yesterday the judge allowed one of his hands to be unshackled. now to a controversial new recommendation about drunk driving limits. the ntsb says those limits should be lower ed by more than a third down to 0.05%. the restaurant industry says targeting the hard-core alcoholic is more likely to save lives and mothers against drunk driving is not endorsing this new recommendation. some south florida teenagers are enjoying hero status after an unexpected stop on the way to their prom. the 20 teens helped rescue a mother and two children when a minivan flipped right in front of their limousine. the teens followed suit and in prom dresses they all pulled the family to safety and kept them calm. >> the only thing i remember is them yelling get out of the car, come on, give me an arm. >> she was saying, oh, where's my baby. i went over, grabbed her baby and showed her, look, your baby is fine.

>> now, the teens eventually did make it to the prom. the limo driver called them they were the best dressed rescue team ever. and we now have a return date for the highest rated drama in the history of television. pbs has announced that the fourth season of "downton abbey" will premiere in january and run for eight weeks. dan stevens' character was killed off in the season three finale, so the show have to find a brand-new leading man. now to sports in miami and memphis. as for last's night action, here is espn. good morning. i'm jaymee sire with this "sportscenter" update. we go to the nba where the warriors and spurs game five tied at two games apiece. pick it up in the third quarter. spurs up four. running off the turnover is kawhi leonard throwing down the big dunk over barnes. leonard in transition, barnes can't get there in time, spurs up 6. fourth quarter, spurs up by 11.

manu ginobili driving and the tough layup and spurs pull away in this one. duncan to ginobili hitting a three. spurs win, 109-91. carmelo anthony and the knicks on the road taking on the pacers. early first quarter, off the miss david west, the long pass, paul george finishes with the one-handed slam. pacers up early in this one. under seven to go in the second. roy hibbert, the offensive rebound. george knocks down the three. late in the second quarter, off the turnover by the knicks, hill coast to coast for the lay-in. pacers end the half on a 13-4 run. third quarter, hill driving to the basket, the tough runner and the foul. look at that shot as the pacers lead, 59-43. hibbert getting the tough one as the pacers go on to win, 93-82. that does it for sports on this

wednesday morning, i'm jaymee sire. have a great day. this ought to teach a couple of eagles not to fight each other. >> this is something he. they were last sunday they are on the ground in minnesota after getting locked together by their talons during a midair battle. >> one of them was able to break free and fly away as a wildlife officer was bringing the other one to a rehab center. the one who stuck around is getting some much-needed tender loving care. >> that's the tarmac at the airport. fighting over the airport. pretty apropos. >> they look okay. coming up next, "the pulse," the dream you can buy for just a few bucks. what could be yours if you win tonight's giant powerball jackpot. plus, the rookie tv anchor fired for his on-air "f" bomb. remember that? well, he gets a new gig. what he's up to now when we return. turn. hanksgiving day, and i have a massive heart attack right in my driveway. an artery in your heart, it's called the widow maker. and mine was 95% blocked. they took me to the hospital, and the doctor put me on a bayer aspirin regimen. [ male announcer ] aspirin is not appropriate for everyone,

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♪ money money time now to check "the pulse." the question is, are you feeling lucky, john? >> i never feel lucky but why not? tonight's powerball jackpot pumped up to 360 million bucks. it's the third highest ever so expect long lines today. with no winner last night, the mega millions jackpot is up to 190 million bucks. >> wow. so with that kind of cash you could easily afford a penitentiapenthouse, this penthouse to be exact, on fifth avenue listed for a mere $125 million. 16 bedrooms covering three floors. >> maybe buy this barnett newman painting which is right there. check this out. sold for $44 million last night at auction. $44 million. >> that's a painting? >> i'm going to sound like a phi philstine. it's a blue canvas with a masking tape down the middle and then pulled off.

>> this is about the creation of life. >> opposing forces of yin and yang and man's inhumanity to color. >> exactly. >> 44 million bucks. >> an incredible amount of money. and so this is incredible story coming up. dramatic career change for that news anchor who famously dropped the "f" bomb first day on the job. >> a month after being fired for swearing, a.j. clemente is now working in a place where he doesn't have to watch his mouth, he's a bartender at a delaware bar serving up drinks for 2.23 an hour plus tips, of course, and he's on the marquee. >> yes, he is. the bar is capitalizing on his 15 minutes of fame and trying to attract customers by, like you said, john, putting his name on the marquee. >> he needs an agent. he needs to be on some reality shows and stuff. finally some high-flying antics. our "play of the day" takes place in switzerland last weekend. >> here goes martin sjonneby setting the unicycle high jump world record nearly 4 1/2 feet. he wasn't down. >> while he was flying high he rolls up to the ford fiesta

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abc7 news starts right now. >> we have breaking news from sunnyvale. >> firefighters battling a major blaze had the lockheed martin space facility. abc7 news reporter cornell bernard is at the scene with more information. >> this is quite a large response to the fire at the sprawling lockheed martin facility in sunnyvale. at least five engines from the sunnyvale fire department are on the scene. this was a two-alarm fire that came in 3:00 a.m. today. the fire centered to building 150. according to a sign that is where a strategic missile defense systems and airborne

lasers are researched. a large response to this fire. there were employees at the time of the fire that were evacuated and standing around the parking lot. this is a secure government facility it has been difficult getting any information. we are waiting for a p.i.o. from the fire department, police department or someone from the lockheed martin organization to speak to us. it is the nation's largest missile defense contractor and they also are involved in aerospace research, as well. the fire was centered to this building. we don't know how many people work in here but firefighters continuing to enter the building. they have hoses rounding the entire building. we have not seen fire or smoke

but this is a very large facility in sunnyvale. we will bring you more information when we get it. >> we will check back with more details on the fire as they become available. >> always worth asking if the weather plays a factor in the fire. mike nicco? >> it is calm in that part of the day. later in the day when the winds pick up i would be more concerned but it is quiet. live doppler 7 hd shows clear conditions as far as radar. we have a few clouds to the north, the increasing high clouds during the afternoon. this morning we have a few low clouds like yesterday but we start off with temperatures in the 40's and 50's ending up from 73 to 83 from the north bay valley to the east bay valley. around the bay we go from 63 in san francisco to 73 in san jose. we will be around 67 in oakland. at the coast it will be breezy and 57 or 58